For some people, filing a personal bankruptcy can provide the opportunity for them to reset their finances and give them hope for the future. It can provide a new chapter free from the debts that many times accrue through no fault of the debtor. A bankrptcy doesn’t mean a person is irresponsible; many times, unintended debts can pile up leaving few options. Medical emergencies, natural disasters with not enough insurance, and unforeseen home or car repairs are just a few of the ways unintended debts can pile up.
A Chapter 13 bankruptcy is, to put it simply, a type of court-supervised payment plan. When you enter into this agreement, you will pay your unsecured and secured creditors each month, based on your income and any reasonable expenses. It is a court ordered reorganization plan that needs not only the approval of the courts but of creditors as well.
True or false: if I make a lot of money or have a lot of assets, then I can’t file for Chapter 7 or Chapter 13 bankruptcy in the state of Florida.
Don’t fall for that common myth about bankruptcy for millionaires. Even if you have a high net worth, you’re eligible to file for Chapter 7 or Chapter 13. In fact, bankruptcy is a smart solution for many savvy business people whose entrepreneurial ventures fail, or who don’t have enough capital to satisfy their business liabilities. The advantages of bankruptcy can also help employees forced to take early retirement from a well-paying job.
At Orlando’s Badgley Law Group, we help many clients file bankruptcy with their tax refunds. We understand that when finances are tight, using your IRS refund check to pay for bankruptcy proceedings is a simple solution. If you’re considering this route, however, beware of this disturbing trend: electronic tax scams.
The Orlando Sentinel recently reported that until last month, the Metro Orlando area was No. 1 in the country for its rate of mortgage foreclosures. This could explain why so many people have been calling my law firm with questions about mortgage foreclosure and bankruptcy. The intersection of bankruptcy and foreclosure is a place of confusion for many homeowners who are looking for options and answers. This week, a couple came to my practice with lots of questions about their mortgage foreclosure, even though they had completed a Chapter 7 bankruptcy with another lawyer several years ago!